Indian Leather And Auto Component Industry

Delhi, India (PressExposure) July 20, 2011 -- Indian leather industry provides employment to more than quarter a million (250000) people and earns foreign exchange to the tune of $14 billion for the country. The number of units involved in manufacturing is in the access of 4000. India also enjoys a superb domestic market of leather goods estimated at INR 16300. Footwear manufacturing in India is also a major industry. In fact India is next only to China in footwear manufacturing. Many companies are involved in shoe style, fashion and design in India. More than 2 billion square feet of leather is produced by the tanning industry in India per year. There are about 2091 tanneries in India with the majority of them located in Tamil Nadu followed by West Bengal. The Indian tanning industry can suffice 10% of the global demand. 13 countries over the globe share more than 75% of the total finished leather exported from India which is estimated to be worth $ 625.5 million.

This performance is supported by presence of necessary infrastructure in the country. IFLMEA or Indian Finished Leather Manufacturers and Exporters Association is the nodal agency taking care of the finished leather industry in the country. Council for Leather Exports is another organization that overlooks export related aspects of the leather industry. Central Leather Research Institute (CLRI) which is the world's largest research facility in its sector is dedicated towards developing new technology and including innovative ideas in the industry.

The auto component industry is growing by leaps and bounds. The auto component companies in India had a turnover of $30 billion in the year 2010 - 2011. This is a growth of 35% from the previous year. The purchase of Indian auto component fetched $5 billion in the year 2010 - 2011 which also witnessed an increase of 32% from the previous fiscal year. The investment also increased by 14% and recorded $10.3 billion. The Indian automotive component industry is poised strategically to tap around $110 billion by 2020. The Indian auto component industry produces engine parts (31%), drive transmission and steering parts (19%), body and chassis (12%), suspension and braking parts (12%), equipments (10%), electrical parts (9%) and other components amounting to 7%. The high quality of auto components manufactured in India attracts more investment in the sector. The country is next to Japan in the number of Deming Prize award won by companies. Best auto parts supplier Chennai, Pune, Gurgaon has the majority of auto component industries concentrated in or around them. Automotive Components Manufacturers Association of India (ACMA) is the focal agency that puts in the effort necessary for promoting development of the auto component industry in India. It also releases regular newsletter to keep members and other related institutions up to date with the happenings in the industry.